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Pyongyang to Test Another Nuke?; Iranian Election Underway; Dealing with Tobacco

Aired June 12, 2009 - 10:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

(BEGIN VIDEO CLIP)

SEN. SHERROD BROWN (D), OHIO: What makes it so important is we need somebody to stand between the very well-paid drug company marketing executives in these 13, 14, 15, 16 year olds who aren't nearly as sophisticated. We need some assistance in making sure that those targeting efforts can't get those young people addicted. 1,000 Americans, 1,000 Americans every day die from tobacco-related illnesses. They need 1,000 new customers every day to replenish their customer base, if you will. This legislation will help stop them from making that a reality.

SEN. DICK DURBIN (D), ILLINOIS: Joe Camel will be given a life sentence and put away forever and we're going to give our kids and our families across America a fighting chance for a better life. This bill is historic. It's been a long-time coming.

(END VIDEO CLIP)

COLLINS: Like we said, now, the House still needs to pass the bill today before it goes to the president's desk. There was some heated debate, as you might imagine on the House floor just a few minutes ago.

We're going to bring that to you in a moment. In fact, we do have this. This is a quote talking about "a product that is lawfully grown and lawfully manufactured, lawfully marketed, lawfully advertised and lawfully consumed." Well, we also have to remember the House already passed nearly identical legislation in April by a wide margin.

CNN's senior medical correspondent Elizabeth Cohen joining me now to take a look at what these rules and regulations may mean to you. So, Elizabeth, it's pretty remarkable when you dissect this bill. Essentially it's going to allow the government to regulate all tobacco products.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: That's right, Heidi. People get the feeling that a lot of people think oh tobacco must already be regulated, right? I mean, after all, it's tobacco, it's a harmful substance. But that's not the case. So now, if this goes through, the FDA will have big powers to regulate the tobacco industry.

Let's take a look specifically at what they're allowed to do. If this bill passes the FDA will be allowed to limit the amount of nicotine that is in cigarettes. Also it will be allowed to tell the tobacco companies to remove hazardous ingredients from cigarettes and also the FDA could outlaw light and low-tar labels. People say those labels don't mean anything and that they're misleading and also it would allow the FDA to ban cigarette marketing to kids.

Now, Heidi, you and I know that the industry says we don't market to kids, but a lot of people say that's just not true and that a lot of their marketing is aimed at young people. Heidi?

COLLINS: All right. So, I mean, there's obviously an awful lot of discussion about this at many different angles, different concerns, but the supporters of the bill say that this is actually the first big step in reducing health care costs. They're making that leap.

COHEN: Right. Of course. You know, a lot of talk these days about trying to get health care costs down. And I'll tell you a lot of doctors and a lot of experts will say the first thing we need to do is to get people to stop smoking. Smoking kills and it costs all of us money, we all have to take care of people who suffer because they smoke. We're talking hundreds of billions of dollars that we spend in this country on taking care of people because they smoke.

COLLINS: Well, what does the tobacco industry have to say about this and people who choose to smoke, who want to smoke?

COHEN: You know, it's interesting, Philip Morris, of course, a big cigarette manufacturer has actually been supportive of many parts of this legislation but there is one part that they really don't like and that has to do with advertising. So let's take a look at what they said. Philip Morris issued a statement saying that they have "first amendment reservations about restricting a manufacturer's ability to communicate truthful information to adult consumers about tobacco products." So they're worried about what they're going to be allowed to say and not say to their consumers.

COLLINS: OK. We're going to be following the story very closely. The vote could happen today, but we will follow it and bring it to our viewers in case it does. Our senior medical correspondent, Elizabeth Cohen. Thank you, Elizabeth.

COHEN: Thank you.

COLLINS: Even if the law is passed, it may still be challenged in court. Thousands of Kentucky tobacco farmers already protesting a similar passed it passed in Canada that limits flavoring tobacco. Two Kentucky congressmen have joined that protest now and they also voted against the U.S. version of the tobacco bill.

Check out these numbers from the American Heart Association. In 2007, 21 percent of high school boys used tobacco. 19 percent of girls. The numbers are higher for men over 18 years old but lower for women.

GM and Chrysler struggle to survive. Some Americans will feel the impact in the heart of their communities. At this hour, Congress looks at the automaker's plan to close thousands of dealerships. That could hurt small towns, car owners will have to drive farther for service and schools and churches could lose generous neighbors come fund-raising time.

Dealers have been fighting the move saying they've done nothing wrong to lose their businesses. Chrysler plans to close nearly 800 dealerships. That's about one-fourth of its network. General Motors cutting even more deeply. It eventually plans to eventually get rid of 40 percent of its 6,000 dealerships.

Quickly now, I want to take a look at the Dow Jones industrial average. Down about 40 points. Market has been open, as you know, for 35 minutes or so. Resting at 8,730. We'll continue to watch those numbers there for you.

For now, let's turn to North Korea and rising tensions over its nuclear defiance. A U.S. official tells CNN Pyongyang may be preparing for another nuclear underground test. Our source in Washington has indications that planning is now under way. It comes as the United Nations moves closer to tough new sanctions for last month's underground tests. North Korea has vowed to retaliate. A punishment like that is adopted and enforced.

Turning an eye on Iran. An unprecedented turnout taking place in the hotly contested race for president. Right now, the lines so long the polling time actually extended. Our chief international correspondent Christiane Amanpour is at one of those polling stations.

(BEGIN VIDEOTAPE)

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT (on camera): Turn out on the polling stations we have visited is heavy and we're getting word that it's heavy around other polling stations as well. People have been waiting in line since 8:00 a.m. when the polls open. It's unusual because generally people start coming out mostly in the mid morning and in the afternoon. This time around, though, they have been lining up even before the polls open and many standing in line already under the boiling sun for several hours. And they expect it to take even several more hours before they can actually cast their vote.

In a very unscientific, personal exit polls that we have been doing we can see at the stations that we've been at that more people seem to be voting for the challenge Mir-Hossein Moussavi than for the president Ahmadinejad. And if the rallies and street demonstrations or street campaigning are anything to go by, many are saying that it could be decided in the first round.

Moussavi's campaign himself said that they've conducted their own poll overnight and they expect a record turn out by perhaps more than 80 percent with some 79 percent casting votes for their candidate. It's way too early for us to be able to say anything close to who is going to be the winner or whether or not it will be decided in a first round.

People who are coming out and telling us that this, by and large, is not a vote for a candidate, but a vote against the president's last four years in power. That this is shaping up to be a referendum on President Ahmadinejad's four years in office. They say that he has not met his promises to improve their economy and to improve their ability to get a living wage. Others say they don't want to see their country held in contempt by countries in the international community.

The proud people, they say, they want to be able to travel and they want to be able to have good relations with the rest of the world, including, they say, with the United States. Many, many of the voters we're talking to whether they're men, women, older or younger say they want a change. Now President Ahmadinejad's support comes from mainly the rural areas, the poor areas, the more religious areas. He spent the last four years traveling around the provinces, handing out cash benefits, making life in terms of benefits for retirees slightly easier, helping build hospitals and schools. And that's where he's been wooing his support. And we're waiting to see how the vote goes in those areas. Christiane Amanpour, CNN, Tehran.

(END VIDEOTAPE)

COLLINS: All right. Just a reminder, those polls still open in Iran for another hour and a half or so. We'll continue to watch that story.

Also, this weekend on "GPS," Fareed Zakaria on the fight for the future of Iran. "What's at stake?". "GPS," Sunday at 1:00 p.m. Eastern.

Severe storms hitting Texas more than eight inches of rain causing serious flooding there in Dallas is what we're looking at. More than 5,000 residents were warned to get ready for possible evacuations. And in central Texas, powerful thunderstorms downed trees and power lines and did a pretty big deal damage. Look at that. Those are mobile homes there. Bad weather grounded hundreds of flights and tens of thousands of people still without power in the Dallas-Ft. Worth area. Wow, I had no idea it was that bad, Rob.

ROB MARCIANO, CNN, METEOROLOGIST: It was. You know, we were showing that radar yesterday and the stuff was just training right over the Dallas-Ft. Worth metropolitan area.

COLLINS: And it was stationary.

MARCIANO: Yes, just one cell after the other going after the same spot. That will saturate the ground in a hurry. And any time you get seven to eight inches of rainfall, some estimations over a foot in spots, in a 24-hour period, you're going to have a serious amount of flooding. The good news today is that most of the action is going to shift a little bit farther to the north across the Red River into Oklahoma. This severe thunderstorm watch in effect until 3:00 local time. And there you see that pretty intense squall that's heading right across the i-35 corridor. So that will definitely have strong, straight-line winds and maybe some hail as well and definitely some heavy rain.

All right. Another day of rainfall across the northeast. It looks like we're starting to see things head off shore. That's good news, but the chance of seeing some thunderstorms in that area, it does persist today and temperatures warming up to about 80 degrees. It will be 80 in New York and 82 degrees in D.C. and still toasty across the south. We still have that stationary boundary where it's really warm to the south and fairly cool to the north although things are beginning to moderate just a touch here.

So here's your forecast and here's that stationary boundary, just kind of fade out here over the next couple of days and will eventually lose some of its punch because I think by the time Sunday and Monday rolls around, it will be gone and some larger weather features, hopefully, will take over as we get into next week.

Delays today, Boston one-hour delay right now, Newark seeing and hour and 45 just from the little showers that are rolling around. 45- minute delays at LGA, JFK, it's a 45-minute delay.

COLLINS: It's just that there's an r in there. That's all.

MARCIANO: I know. Laguar. I can't say it. La Guardia. Ft. Lauderdale.

COLLINS: Right.

MARCIANO: W-F-O-R.

COLLINS: Yes.

MARCIANO: Here's our affiliate shot out of Broward county. Temperatures in the mid-80s. You know, that camera is a little funky. I think we probably have seen prettier shots out of that area. Temperatures will get to the lower 90s with maybe an afternoon thunderstorm.

COLLINS: OK. Very good. Rob, thank you. Appreciate it.

MARCIANO: You got it.

COLLINS: An unsolved murder dating back a generation. An arrest is made and new questions are coming up now. How did police not realize the accused killer was one of their own.

(COMMERCIAL BREAK)

COLLINS: Police being accused of being criminals. Two former West Palm Beach officers have been arrested in the beating of a robbery suspect. Today they're free, pending an arraignment coming up next month. The beating in question was caught on dash cam videotape. The two officers are accused of kicking and punching a handcuffed robbery suspect last year. Their lawyer says they will plead not guilty.

It's a case filled with intrigue and troubling questions. Detectives reopened a 23-year murder investigation and make an arrest. The suspect a fellow officer who had been working with them the whole time. Were clues missed or ignored? CNN's Dan Simon has the story.

(BEGIN VIDEOTAPE) DAN SIMON, CNN CORRESPONDENT (voice-over): It was about 8:00 in the morning last Friday at Los Angeles Police headquarters. Detective Stephanie Lazarus was stunned by news that a 23-year-old cold case murder had finally netted a suspect.

On the evening of February 24th, 1986, someone brutally murdered Sherry Rasmussen, a hospital nursing director in a condominium she shared with her husband.

UNIDENTIFIED MALE: Miss Rasmussen died as a result of multiple gunshots.

SIMON: Detectives had always believed Rasmussen was killed by a pair of male burglars but Attorney John Taylor who represents the family says Rasmussen's father tried for years to get the police to listen to another theory.

JOHN TAYLOR, RASMUSSEN FAMILY ATTORNEY: He said my son-in-law has an ex-girlfriend who is an L.A. Police Department officer, have you looked into that? Have you checked her out?

SIMON (on camera): What did the officer say?

TAYLOR: Over time they always diverted his inquiry and told him he'd been watching too much TV.

SIMON (voice-over): But the case remained unsolved and for years it sat in the cold case file until it was recently reopened. A DNA test on evidence proved the original theory wrong. It proved the killer was a woman. The investigation would soon lead them down the hall at police headquarters.

UNIDENTIFIED MALE: Lazarus has been booked for homicide and is currently in the custody of Los Angeles sheriff's department.

SIMON: Lazarus had been a highly regarded detective, 26 years on the job. But in 1986, she was a rookie cop and now authorities say she was apparently in a jealous rage when she killed Sherry Rasmussen. And according to the victim's family, she had previous problems with Lazarus. When the new DNA evidence focused detectives on female suspects, they went back to the old files and found the family's suspicions about Lazarus. So without her knowledge they got a DNA sample from an item she discarded.

DEPUTY CHIEF CHARLIE BECK, LOS ANGELES POLICE: A discard is something that an individual is using and then throws away. And so it could be gum, it could be a coffee cup, it could be a straw, it could be a fork.

SIMON: What it was, police aren't saying yet. What they will say is that today's department is different from years' past and they aren't afraid to investigate their own.

BECK: It would be much easier to arrest a young employee with a couple years on the job that nobody knew as compared to a 26-year veteran detective that everybody knows. So do I wish it got handled earlier? Well, of course. Is it harder for us to do now? Yes, it is.

SIMON (on camera): Lazarus' attorney told CNN he has no comments. As for the detectives who worked the case, they're now retired but face plenty of questions as to why Lazarus remained free for so long. Dan Simon, CNN, Los Angeles.

(END VIDEOTAPE)

COLLINS: Danger in paradise. Drug violence spreading into tourist areas in Mexico. Making American vacationers think twice about their summer travel plan.

(COMMERCIAL BREAK)

COLLINS: Crews in Arizona are filling up a tunnel found underneath the U.S.-Mexico border. The suspected drug smuggling tunnel runs 83 feet from Mexico into Arizona. The border patrol says it's big enough for someone to crawl through. It's the 16th border tunnel found since late last year.

Drug violence in Mexico has chased many American tourists from the country and a few who still go to traditional tourist hot spots say they're lying low. Afraid for their life. CNN's Ed Lavandera has more from Acapulco.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice-over): At first the streets of Acapulco look normal, but then they appear, a truck full of army soldiers sent in by Mexico's president to keep peace on the streets of this tourist playground. For Jillian Lang, it's a reminder that life is far from normal here.

JILLIAN LANG, AMERICAN TOURIST: The military is driving back and forth and doesn't make me feel any more at ease, if anything it worries me more. It reminds me of what's going on here.

LAVANDERA: Lang is visiting from California, one of the few non- Mexican tourists we found in Acapulco. She arrived just as the city was in the midst of violent clashes between drug cartels and Mexican authorities. The rampage ended with some 20 people killed, including several Mexican soldiers and police officers. So, Lang says she's not venturing far from the tourist strip.

LANG: I talked to some people who lived here and they said it's OK. They said stay in this area and you'll be fine. They said it's fine to go out at night and do stuff, but I'm still kind of laying low.

LAVANDERA: That violent shoot out took place less than two miles away from the cafe where we met Jillian Lang.

(on camera): We just found the street where the shooting took place between cartel members and the Mexican military. And what struck us was at the entrance of the road here a shrine to the Virgin Mary and they tell us the shootings took place down this way on this road. And we're going to take you there now. (voice-over): This isn't a street you'll see pictured in Acapulco tourist brochures. It's a sordid looking neighborhood in an area with run-down hotels and shanty buildings.

(on camera): So we've gotten as far as we're going to get on this road. There's a blue crate and part of a tree blocking the way. And what you can't see is over there behind those trees are three members of the Mexican military who say this is as far as we can get and as soon as we pulled up, they pulled masks over their face. They didn't want to be seen on camera.

(voice-over): As we look around, we notice behind a wall several large hillside villas with swimming pools, a hint that behind the rough facade people with much more money live here.

Federico Martinez lives just a few houses away from where the gunfire broke out. "I didn't know narcos live in this neighborhood," he tells me. "I don't know the men involved in the shootings. It doesn't bother me." But the threat of violence is bothering foreign tourists.

These men work the beaches and they tell us American tourists have disappeared. Beaches are mostly empty, this gem on the Pacific coast has lost its luster. Ed Lavandera, CNN, Acapulco, Mexico.

(END VIDEOTAPE)

COLLINS: All next week an "AC 360" special, Can the U.S. afford to make marijuana legal? Can we afford not to? Well "360" is keeping them honest on both sides of the argument. "America's high, the case for and against pot." An "AC 360" special starting all week, starting Monday night that is for all week long, 10:00 Eastern.

What people are saying about plans for health care reform. We're taking a snapshot across America. We got a panel of guests and we also want your feedback on our blog.

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.

COLLINS: Well, we all know the recession has wiped out home values and stock portfolios, but now the official numbers are in and they are staggering. Susan Lisovicz is at the New York Stock exchange now with details and a little bit of a silver lining, too. Like that. Let's start with the bad news though, Susan. How much have we lost?

SUSAN LISOVICZ, CNN CORRESPONDENT: It's just staggering. It really is, Heidi. $1.3 trillion in the first three months of the year and just to remind ourselves that a trillion is 1,000 billion. Why is that? Well, stock markets was tanking, the housing markets was tanking and total wealth, ultimately came in, your net assets, just under $50.5 trillion.

Household net worth, by the way, Heidi, has been down the past seven quarters. It hit a record high in late '07. That was when the stock market, the Dow and S&P 500 hit their all-time high and the housing market had not collapsed. It was late '07. Not that long ago.

COLLINS: Yes. Well, you'd expect though that such a big drop in wealth would have an effect on how we actually live our lives. Are people really thinking harder about their purchases and their expenses right now?

LISOVICZ: That's why we talk all the time about consumer confidence, which, by the way, came out at the top of the hour and it improved. Not quite the jump that the street was expecting, but very important to have consumers feeling good because they are the key. We are the key to recovery. Household debt is shrinking. It fell at just over one percent rate in the first quarter. That compares to double-digit growth between '02 and '06. We're big consumers. What you're seeing is a massive amount of deleveraging in a very short amount of time and it's very painful to a lot of us. Some of us who do want to spend, find that we can't because credit is just not available. Heidi?

COLLINS: Yes. So, what about that silver lining? Can we get to the good stuff?

LISOVICZ: Yes. The rate of decline is slowing. This is all about perspective, it's all relative. That decline as massive as it was. $1.3 trillion in the first quarter compare it to $4.9 trillion in the fourth quarter, which is the biggest drop, I think, since the Federal Reserve began taking records, began keeping records of this stuff -

COLLINS: Yes.

LISOVICZ: ... about 50 years ago. So that's the silver lining, we talked about it all the time that we're seeing things aren't as bad as they were. And so that's a big difference in just one quarter. No big difference, though, since we last spoke, Heidi. We've seen a little bit of a pull back. The Dow, the Nasdaq, the S&P 500 all down slightly, but one thing, another silver lining, they are all up sharply. We talked about it yesterday. We got a bull market and they're all up at least 35 percent since the March lows.

COLLINS: I like that. That's good.

LISOVICZ: All right. There you go. Go enjoy your weekend.

COLLINS: OK. All right. Susan, thank you.

LISOVICZ: You're welcome.

COLLINS: Temperatures outside are going up, but you don't have to choose between saving money and staying cool. CNN Money.com's Poppy Harlow has our energy fix now from New York. That's for sure. It's like 900 degrees down here.

POPPY HARLOW, CNNMONEY.COM: I'm sorry about that, Heidi. It's rainy and miserable here in New York. But the summer is here, and it's going to be hot and muggy. And other than turning your air conditioner down, we want it show you some very cool devices that you can use to save on your energy. If you use these altogether, you can save 30 percent a year on your energy bill. We're using props, and it all depends where you live. Take a look at that map, of course, the savings are highest out here in the Northeast. Save about $700 a year if you use these. In the West, where power is a bit cheaper, you'll save about $500 a year.

Here's the first one, Heidi. This one is by Black and Decker, and what it is is a thermal leak detector. You press this button and you hold it up by your windows, your doors, and this infrared light goes off when it senses a draft. You can caulk it up or weather-strip it. Pays for itself in under a year, based on those Energy Star estimates, Heidi It's pretty handy. Not that expensive.

COLLINS: Kind of like a stud finder.

HARLOW: Yes, exactly.

COLLINS: So, what about keeping your heating and cooling bills down? We always like advice on how to do that.

HARLOW: What you can use are these programmable thermostats. This one, Honeywell. Eighty-four bucks. And then there's this more expensive one. Eco-Beat (ph). Three hundred eighty-five bucks. More bells and whistles.

You can remote-program this over the Web from your desk at work, and what Energy Star tells us, if you set your temperature in your house eight degrees higher in the summer and eight degrees lower in the winter, this one will pay for itself in six months. This one's going to take 26 months. But you're going to make up for it. So, it's worth the investment.

COLLINS: OK. Does it do the dishes or vacuum or anything?

HARLOW: Working on that one.

COLLINS: How do I actually know how much energy I'm saving? Do I have to take the bill and compare it from month to month, or -- what's the scoop on that?

HARLOW: This is my favorite device. The Kilowatt. It's not expensive. Thirty-five bucks. You buy this thing, you know, the hardware store, you plug it into the wall -- this into the wall and then plug your device right into the front there. Your TV, your coffeemaker, your computer. Heidi, it tells you how much you're saving every month by turning that device off instead of leaving it on. Pretty neat, huh?

COLLINS: Yes.

HARLOW: And there are more details. A whole gallery about it right there on CNNmoney.com. Some more details. Helping you save some money this Friday.

COLLINS: All right, Poppy Harlow, appreciate that.

HARLOW: Sure. COLLINS: What people are saying about plans for health care reform. We're taking a snapshot across America. Hear from three people in the industry, what they think should be done.

(COMMERCIAL BREAK)

COLLINS: The future of your health care is being worked out in Washington, and while lawmakers are still far from reaching consensus, President Obama headed out to Green Bay, Wisconsin, yesterday to make his pitch.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: In all these reforms, our goal is simple. The highest quality health care at the lowest possible cost. Let me repeat what I said before. We want to fix what's broken, build on what works. As Congress moves forward on health care legislation in the coming weeks, there's going to be different ideas and disagreements about how to achieve this goal, and I welcome all ideas. We have to have a good debate. What I will not welcome, what I will not accept, is endless delay or denial that reform needs to happen.

(END VIDEO CLIP)

COLLINS: We've invited a few people to join us today to talk about how they see health care reform. Want to tell you who they are. Chris Woleski was actually at the president's town hall meeting in the room. She works for health care professionals and coming to us out of Green Bay, obviously. Dr. Jane Delgado is head of the National Alliance for Hispanic Health, coming from Washington, D.C. today. Also in Washington, D.C., Michael Cannon. He is with the Cato Institute and is the director of health policy studies.

All right, so, guys, I want to begin with you, Chris, because you were there in the room for this town hall meeting that we just heard some sound from the president. What was the mood there? Tell us a little bit how it felt.

It was very exciting and people were just so grateful to be there and excited to hear the president, looking forward to an opportunity to speak with the president, and afterwards that same high-level of energy and enthusiasm was still present.

COLLINS: OK, so people felt really good about what he said about his ideas for health care reform?

CHRIS WOLESKI, WORKS FOR HEALTH CARE PROFESSIONALS: Yes, I think that what people appreciated the most was hearing that he was there to listen to them and also to give some of his points and his perspectives about what health care reform needed to cover, and then also to encourage people to work with their Congressmen and women and their senators to get their perspective across so that as the details of the plan are worked out that those perspectives are included in the plan. COLLINS: You work with health care professionals. It's part of the reason we have you on today, other than being in the room when that town hall meeting was happening. What do they see as much-needed reform?

WOLESKI: Well, I think that the health care providers' perspectives are just as diverse as the rest of the population. There isn't a one- size fits all. Many of the providers can see things from the perspective of their patients and understand sometimes the impact the health care industry can have on patients in terms of the costs. And they're really looking forward to some reform that will help control the costs for their patients. But there's also a reluctance to see the government get too involved in this and start to control health care from Washington, D.C. So, that's very much -- that sentiment is very much expressed among positions.

COLLINS: OK. Understood.

Dr. Jane Delgado, to you now. What do we know about these new proposals?

DR. JANE DELGADO, PRESIDENT, NATIONAL ALLIANCE FOR HISPANIC HEALTH: We know that the new proposals include some sort of public option, and I think that's important to think about. It's one part of the answer that, in fact, that the private sector in terms of insurance has not really answered people's needs. People talk a lot about not being able to pay for health care, but a lot of people who have insurance will tell you they went to the insurance and that in fact, what they thought would be covered was not.

So, we have a lot of people who are underinsured, and we need to have a public option to change that discussion. So I'm very happy that the president went and spoke about that, but I'm also happy, most important of all, that he went to people and told them, please, contact your legislatures and let them know what you think. That is good news for everybody.

COLLINS: OK, yes, we just got to get people to do it to make sure that is really happening. Michael Canon, what do you know about the plan?

MICHAEL CANNON, DIRECTOR OF HEALTH POLICY STUDIES, CATO INSTITUTE: I know what the president wants to do is he wants to cover all the uninsured, and that will cost $2 trillion over the next two years. The only three options he's contemplated to come up with that money are, one, raising taxes for people like union workers, women, older workers by taxing their health benefits, something he criticized John McCain for doing. Two, reducing the number of services people receive. So having the government tell people, no, you're not going to get the medical care you want or, three, paying doctors less.

What he's not contemplating are reforms that would encourage consumers to cut back on care -- to encourage entrepreneurs to find ways to make health care better and more affordable. He really wants government to run the show.

COLLINS: So, Dr. Delgado, do you agree with any of that? Who would really benefit and who would be hurt with some of these new ideas?

DELGADO: Actually, I'm surprised that's what Michael said because, in fact, what the president wants is a combination of public/private. Now, for small employers, if the government went in and actually had plans they could afford, you know, there's a new group called the Small Business Majority. And they're looking forward to having premiums that they can afford, if they -- once the government gets in -- costs come down. I think the American people will do better if we can get health insurance that is not only there to pay the premiums, but there when we want to go and use it.

COLLINS: So I -- and it sounds like, I don't want to put words in anybody's mouths, Dr. Delgado it sounds like you're saying it will actually cost less once the government gets involved. Michael, you're saying this is going to be hellaciously expensive at $2 trillion.

CANNON: Spending is going to rise, no doubt. The president has said that. But when advocates of the president's approach say the premiums are going to be lower, what they're not telling you is how they're going to reduce those premiums. They're either going to reduce them by taxing somebody else, by cutting the number of services you receive or paying doctors less, which makes it harder for people to find a doctor who will see them. Those are the only three approaches the president is contemplating, and those are very troubling.

COLLINS: Okay, last word. Dr. Delgado?

DELGADO: Well, I think that what the president is contemplating is having something which will help people live healthier lives, and he's leaving it up to Congress to really hammer out the details. And, most important of all, he's telling each person to go in, write, send an e- mail, call, whatever you can. Let your legislators know about your experience, because that's how it's going to get better for everyone.

You know, we have these events around the country where people come for physical fitness and (INAUDIBLE) screenings, and people want to take care of themselves. We just have to give them the means to make it happen.

COLLINS: Yes. The discussion is going to be very, very long and involved, as we would all, I think, expect. Thanks so much, everybody, for being with us. Chris Woleski from Bellen (ph) Health Care, who is there at the town hall meeting in Green Bay. Dr. Jane Delgado from the National Alliance for Hispanic Health, and Michael Cannon from the Cato Institute.

Thanks, guys.

Health care reform is, of course, the big headline on the CNN NEWSROOM blog this morning. Take it over to you, once again, the way you get there, CNN.com/newsroom and then you'll see a list of all the different anchors here. Just click on Heidi, and you'll see how we have written up the story for you a little bit and letting you know what it's all about and some of the facts and figures that we have been able to uncover here. And then just go ahead and just add your comments on health care reform. Meanwhile, we are zeroing in on the health care debate all next week. Issue by issue, from 11:00 to 1:00 Eastern. Tony Harris and Elizabeth Cohen will focus on different topics every day from prevention and preexisting conditions to who pays the most and who gets the best and worst treatments. The pros and cons of Democrats, Republicans and the president's plans and opportunities for you to weigh in. Make sure you catch it, next week, 11:00 to 1:00 Eastern.

The first step of a long journey and we want you to join us.

A kindergartner stands up for himself after a very long time of sitting in a wheelchair. And other school kids, too, caught in the crossfire.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: We want to get your answers to your financial questions. Let's go straight to the Help Desk. Donna Rosado is a senior writer with "Money" magazine, and Stacy Bradford is a financial journalist.

All right, guys. Let's get right to work. Patsy asked, "I have a 40- year bloom mortgage at 5.99 percent, and get a 4.52 percent, 30-year fixed mortgage, should I refi, even though my monthly payments would go up by about $185 a month, or just stay in the mortgage I have and pay more on the principal?" Stacy, I get questions like these all the time. What do you think?

STACY BRADFORD, FINANCIAL JOURNALIST: If she can actually get a 30- year fixed at 4.25 percent, she should grab it. There's no question about it. Yes, her monthly payment would be a little bit higher now, but she will know what that monthly payment is for the life of the loan, and it will never change.

HARLOW: That is so attractive, don't you think so, Donna?

DONNA ROSADO, SENIOR WRITER, "MONEY" MAGAZINE: It's a terrific rate, and I think Stacy brought up a good point. Rates are going up -- if she can get that 4.25, that is tremendous. She probably would pay a bit more in points or fees to get that, but I agree with Stacy. If you can do that, more power to you.

HARLOW: OK, Eric asked, "I applied for refinancing on March 13. It's June, and my refinancing application is still not closed. How long should the process take? I've sent in every document requested within one business day." Donna, my heart goes out to this viewer. This is so frustrating.

ROSADO: And it's such a situation that is not unusual at all. My husband and I refinanced earlier this year, and it took us several months, as well. With record-low interest rates, mortgage rates this spring, the volume of applications and many first-time home buyers, as well, really flooded banks. It is taking longer to get refinancing.

HARLOW: But these rates have come back up.

ROSADO: Well, that's the good news for this person, that with rates going back up, the loan volume has really come down. There's fear -- so he should be able to -- it should be a process, but the key for him is to make sure that he's locked in that rate. If he applied in March and he can hold on to that rate, he wants to make sure that rate is locked in, because rates are going up and he may have to pay for an extension, but I think it would be well worth it.

HARLOW: All right. And so always, you want to make sure you're getting the right kind of loan. That 30-year fixed, that is luscious. Thanks for your help today. Great answers, tough questions.

The Help Desk is all about getting your answers. Send me an e-mail to Gerri@CNN.com or log on to CNN.com/helpdesk to see more of our financial solutions. And the Help Desk is everywhere. Make sure you check out the latest issue of "Money" magazine on newsstands now.

(COMMERCIAL BREAK)

COLLINS: Over the past few weeks, CNN has told you about the frightening number of Chicago schoolchildren who have been shot in street violence. In just a moment, we have a story of triumph we want to share with you.

But first, a glimpse of just how bleak the situation is. This school year, 36 public school students have died in acts of violence. Many more have survived brushes with death. Chicago's police say 693 minors have been caught up in cases of aggravated assault with a firearm. Sometimes they were the victim of gun-related crimes. Other times, they were the person committing the crime.

You're about to meet one young man who was caught in that crossfire of violence. Last spring, a stray bullet hit four-year-old Martrell Stevens and lodged in his spine. He was paralyzed.

(BEGIN VIDEO CLIP)

Every day he says, "I'm going to walk. I'm going to walk."

(END VIDEO CLIP)

COLLINS: And he did walk. Look at that. This is his kindergarten graduation. It was just a few days ago, and so we wanted to meet this remarkable young man. Here with us right now, Martrell Stevens and his mother, Lakeesha Rucker. They are joining us there from Chicago.

So, good morning to you guys. Martrell, you made it through kindergarten and stood up and walked across the stage. How did that feel?

MARTRELL STEVENS, GUNSHOT VICTIM: Good.

COLLINS: Yes? What did everybody have to say to you?

STEVENS: They said -- they said -- they was hollering and they was whistling.

COLLINS: Yes. It was a pretty loud crowd, wasn't it?

STEVENS: Yes.

COLLINS: Good for you and congratulations. Mom, I want to ask you, Lakeesha, how is his recovery been coming?

LAKEESHA RUCKER, MARTRELL STEVENS' MOTHER: Oh, his recovery has been remarkable, and it's been amazing that my son is able to walk again on the walker. It's very outstanding.

COLLINS: I imagine that you were in the audience and you saw him walk across that stage with his cap and gown on that kindergarten graduation. How did that make you feel inside after everything you've been through?

RUCKER: It was amazing. I was very cheerful and I was excited. I was very excited.

COLLINS: How much has he been walking since graduation? I guess it was last Tuesday, I think, right?

RUCKER: Yes.

COLLINS: You been walking a lot since then?

RUCKER: Yes. He uses his walker every day when he's at home. He uses his walker to get around the house everyday.

COLLINS: Wow. Where did he get the motivation? This is a lot of work. It's physically very difficult.

RUCKER: Actually, he motivates himself, because he -- Martrell is very inspiring, and he wants to walk and he's very demanding that he's going to walk again. So, Martrell -- that's one thing he wanted to do was walk across the stage. So, we worked on him walking to get his diploma.

COLLINS: Yes. Yes. That was something he said he absolutely wanted to do. What are the doctors telling you about the prognosis and how much further he could actually proceed?

RUCKER: Actually, they are unable to tell me. Right now, they're unable to tell me if he's going to -- what the outcome is going it be.

COLLINS: I guess they were probably pretty surprised that he was able to walk across the stage, right?

RUCKER: Yes.

COLLINS; All right, well, we are so very happy for you. Martrell...

STEVENS: Yes?

COLLINS: ... you're a very big first-grader now, almost anyway. What do you think about that?

STEVENS: Good.

COLLINS: Yes, good?

STEVENS: Yes.

COLLINS: Well, it's a pleasure having you guys and thank you so much. We certainly appreciate the triumphant story in wake of everything else that is happening in Chicago. Thank you so much, Lakeesha Rucker and Martrell Stevens. Congratulations to you.

Also want to let you know, rap star Kanye West is doing his part to stop the violence. He's urging kids to stay out of gangs and in school, and in fact, he gave a free concert for 3,000 public school students who improved their grades.

(BEGIN VIDEO CLIP)

(MUSIC PLAYING)

COLLINS (off camera): The show was part of the Kanye West Foundation, which was founded by his late mother. It's the first major event for the foundation since she died back in 2007.

(END VIDEO CLIP)

COLLINS: Talk about determination. Homeless teens graduating high school without their parents' help. They've overcome barriers most of us have never had to face. Sofia Choi of our affiliate KVBC in Las Vegas has the story.

Unfortunately, it looks like we're having trouble bringing that story to you. Tell you what. We're going to try to do that tomorrow because it's a really interesting story. The teens are going to college, thanks in part to scholarships.

And so we -- actually, I'm being told by a little bird in my ear that we have it now. Let's go ahead and take a look.

(BEGIN VIDEOTAPE)

UNIDENFIED MALE: Yes, I'm excited. I'm very excited.

SOFIA CHOI, KVBC CORRESPONDENT: The smiles and caps and gowns are ready to go, and this week, these homeless teens will graduate high school without their parents' help.

CORBIN DAVIS, GRADUATING HIGH SCHOOL: I'm graduating for me. I can't let her not being there take away from the important.

DONNA HILL, GRADUATING HIGH SCHOOL: The key to revenge (ph) is success, and I graduated without my mom.

UNIDENTIFIED MALE: I went this far without them, so, why break down and cry now?

CHOI: We first introduced you to D'andre Cole back in March. His mom kicked him out after losing her job. He lived on the street until he found shelter here at the Nevada Partnership for Homeless Youth. D'ANDRE COLE, GRADUATING HIGH SCHOOL: I just told myself that I wanted to make something of myself. I just can't live like this forever. So, with that, I'm making something of myself.

TIM MULLIN, NEVADA PARTNERSHIP FOR HOMELESS YOUTH: Whether issues at home, issues at school, issues with just trusting teachers or adults -- that all factors into this situation that they're in. So, it's a lot of barriers for them to overcome, so it's a major achievement for them to graduate from high school.

CHOI: So, for these kids to go to college, well, that's a real rarity. D'Andre is headed to Nevada State College. He hopes to become an astronomer.

COLE: I made it. I mean, pretty much, I'm going to be like, here I come, world.

(END VIDEOTAPE)

COLLINS: Yes, look out. The teens are going to college, thanks in part to scholarships through the Nevada Partnership for Homeless Youth Shelters.

Landmark legislation on Capitol Hill. The Senate passes tobacco bill that would give the FDA new power over the industry. What's next for this controversial measure? I'm Heidi Collins. Those answers and more when CNN NEWROOM continues with Tony Harris.